Italian SME group cuts out banks with first minibond ABS trade

By Tom Porter
24 Jul 2014

A group of eight Italian water utility companies have issued asset-backed securities backed by their own minibonds, in a novel technique that its structurers hope can be replicated to unlock funding for small and medium-sized companies throughout Europe and offer them an alternative to bank borrowing.

A special purpose securitization vehicle called Viveracqua Hydrobond 1 fully subscribed €150m of minibonds issued by the eight companies as the Viveracqua Consortium on a cross-collateralised basis, before issuing the same value in ABS.

The deal was co-arranged by structured finance specialists Finanziaria Internazionale (Finint) and Veneto Sviluppo, ...

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